Foreign estate duty and related charges were not deductible as estate administration expenses under the Estate Duty Act.

Foreign estate duty paid in the United Kingdom was not deductible as an administrative or realisation expense under the Estate Duty Act, because section 30 already provided relief through the applicable reciprocal arrangement and section 49 dealt separately with duty in non-reciprocating countries. The foreign duty itself therefore could not be recharacterised under section 48. Interest on delayed payment and bank charges also failed as deductions, since there was no material showing they were necessarily incurred because the property was situated outside India. The allowance of solicitor's fee was left undisturbed, but it did not support the wider deduction claim.

---

---

Issues: Whether death duty paid in the United Kingdom, interest on delayed payment, bank charges and related expenses were deductible from the principal value of the estate under the Estate Duty Act, 1953.

Analysis: Section 30 of the Estate Duty Act, 1953 provides for relief from double taxation through agreements with reciprocating countries, and the agreement with the United Kingdom already afforded credit for the foreign duty. Section 48 allows only additional expense incurred in administering or realising property situated outside India, while section 49 separately deals with duty payable in a non-reciprocating country. Reading these provisions together, the foreign estate duty itself could not be treated as an administrative or realisation expense under section 48. The claim for interest on delayed payment and bank charges also failed for want of material showing that such amounts were necessarily incurred by reason of the property being outside India. The allowance granted for solicitor's fee was not disturbed, but that did not justify the broader deduction claim.

Conclusion: The deductions claimed on account of United Kingdom death duty, interest and bank charges were not allowable under section 48, and the assessee's challenge failed.

---